Here’s what’s happening in real estate investments
Even as the Federal moratorium begins to lift, there remain serious questions about real estate investing in the post-pandemic marketplace… and luckily we have the answers.
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According to a recent analysis by KBRA (free signup required to read the report) the supply of properties suited to be operated as single-family rentals remains low, in contrast to the inception of the institutional SFR sector, when operators began acquiring properties largely through distressed home sales.
Although the Mortgage Bankers Association estimates nearly 2.0 million homes are in some form of COVID-related forbearance as of June 2021, it is unlikely foreclosures will return as a source of SFR supply in the near term, given the numerous government-sponsored programs available to extend forbearance.
So what does this mean for investments, and will the latest trends stifle mortgage lending? There is no simple answer as the landscape is becoming much more complicated.
New participants continue to enter the SFR sector on a large scale, including Invesco Real Estate, which announced a joint venture with Mynd Management to spend as much as $5 billion to purchase 20,000 homes, according to KBRA.
Lennar Corporation announced its vehicle, Upward America, had received a $1.25 billion equity commitment from Allianz and Centerbridge. Starwood Capital Group and Fortress Karios Living also issued one securitization this year. In addition, KKR announced plans to invest in the space via My Community Homes, while selling its previous vehicle, Home Partners of America, to Blackstone.
“The SFR asset class continues to experience shifting sources of financing,” the analysts note.
“Although these alternatives have expanded in some areas (term loans, corporate level borrowing, revolvers/warehouse lines, sovereign fund investment, and joint ventures), SFR operators have also experienced contraction in financing options, such as when Fannie Mae and Freddie Mac withdrew from the sector in 2018.”
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Hurricane bearing down on you? Time to ARKUP and move out
When Jeff Bezos shot himself into space we were all reminded that, for the rich, when the going gets tough, the rich get going.
But what if a hurricane is bearing down on you and you don’t want to evacuate via those pesky, jammed highways?
Well, for a couple of million, you can buy an ARKUP floating home and simply “sail” your home away from the danger!
ARKUPs, as they are called, are the newest twist on waterfront dwelling: The hurricane-proof homes can be docked at a marina, or they can be driven at 8.5 knots as far as 2,500 nautical miles into the ocean.
The concept is nascent.
ARKUP’s first prototype—the $5 million, four-bedroom, 4,350-square-foot Arkup75—was finished in 2019, and there are few others.
One, however, has been commissioned by a Miami-based hospitality company with the hopes of turning Arkup into a new breed of vacation rental.
Here’s the insane marketing video that will make you want to get rich so you can buy an ARKUP.
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PHH Mortgage volumes up more than 350%!!
PHH Mortgage continues to grow with 2021 volume up more than 350% over last year according to Inside Mortgage Finance.
They also just made a major hire and are looking for more TOP talent!
The latest news related to PHH’s growing business is the addition of Tony Millis as VP, Central Division Sales for Correspondent Lending.
“Tony is a great addition to our rapidly expanding team and will be a wonderful asset as we continue to grow our Corresponding Lending program,” said PHH on LinkedIn.
What’s even better, PHH Mortgage is growing and hiring sales executive roles across the country!
“If you want to join an up and coming leader in the Correspondent business, then check out our openings and apply at https://jobs.ocwen.com/ where you will fill find sales roles and much more,” the post said.
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